Whole nature foods sells a gluten-free product for which, Ask an Expert

Management Studies

Whole Nature Foods sells a gluten-free product for which the annual demand is 5,000 boxes. At the moment, it is paying $6.40 for each box; carrying cost is 25% of the unit cost; ordering costs are $25.00. A new supplier has offered to sell the same item for $6.00 if Whole nature Foods buys at least 3,000 boxes per order. Should the firm stick with the old supplier, or take advantage of the new quantity discount? Please show your work.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92038239

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